Dubai: low rates boost mortgage transactions in 2021 – News
The mortgage market in Dubai has grown exponentially in the first three quarters of 2021, growing 68% from last year and 71% more than in 2019, according to the latest official data revealed on Sunday. .
Data released by Mortgage Finder, an independent mortgage advisory firm in the United Arab Emirates and part of the Property Finder group, revealed on Sunday that the third quarter of 2020 was a particularly busy time for the mortgage industry. This happened as banks and other stakeholders involved in the mortgage process reopened, allowing mortgage transactions that had been put on hold during the foreclosure to go back to normal.
“It has been a very busy year, with the total number of mortgages registered in Dubai in the first three quarters already exceeding the total number registered for the whole of 2020. It is so exciting to see that more and more buyers access the housing ladder. Said Warren Philliskirk, director of Mortgage Finder.
“Now, with the opening of the Expo, we are even more excited to see what will happen as we enter the last quarter of the year,” he added.
Low interest rates are a major factor attracting new buyers to the local real estate market, as 83% of mortgage transactions were made by people who were first buying property in the UAE.
In 2020, the UAE Central Bank reduced the down payment requirement for first-time buyers in the UAE by 5%, raising it to 20% for non-UAE nationals and 15% for nationals. It is positive to see first-time buyers benefiting from this reduction in the down payment as well as the record low interest rate environment the UAE is currently experiencing.
Dubai’s real estate market has broken records this year in terms of value and transaction volume, with foreign investors flocking to the local market to take advantage of the attractive prices. As a result, the real estate sector took a new step in the third quarter of 2021, as it became the best third quarter on record in terms of transaction value in the history of the emirate’s real estate sector, reaching 42.35 billion. from Dh. In September. At the same time, real estate transactions crossed the 100 billion dirham mark in September thanks to a phenomenal growth in monthly sales, thanks to the presence of a good number of international investors in the market.
Villas / townhouses accounted for 63% of mortgage purchases, while apartments accounted for 35%, and the remaining 2% was allocated to land, commercial property and other types of properties. The most popular villa communities were Jumeirah Golf Estates, Arabian Ranches and The Springs.